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Superneutrality is demonstrated to no longer hold in the Sidrauski model as soon as agents are heterogenous with regard to their productivity. However, quantitative effects of inflation on the capital stock are found to be rather small.
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This paper revisits Keynes's liquidity preference theory as it evolved from the Treatise on Money to The General Theory … policy. Contrary to the neoclassical "special case" interpretation, Keynes considered his liquidity preference theory of … illusion of money neutrality. -- liquidity preference theory ; interest rate determination ; loanable funds fallacy ; bank …
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